In preparation for the upcoming new fiscal year, the city is making two adjustments in utility billing to fully cover the cost of services provided, including increasing the credit card convenience fee and recalculating how the cost of lost power is recovered.
There is no doubt that credit cards provide convenience when making payments for goods and services, but as we all know, that convenience comes at a cost. The city of Burnet began charging a credit card processing fee for the first time in 2022, but that 2% fee falls short of covering the actual costs that credit card companies charge the city on every transaction. This gap has resulted in a loss to the city of approximately $80,000 in the current fiscal year. To address this issue, the city council recently approved an increase in credit card processing fees.
A 3% credit card processing fee will now be charged for city-provided utilities, golf course services and purchases, and other municipal fees. A 5% credit card processing fee will now be charged for Hotel Occupancy Taxes, municipal court fines and fees, building permits, and development service fees.
The city of Burnet purchases electricity for its residents from the Lower Colorado River Authority (LCRA), but did you know that the city never delivers or sells all of the electricity it buys each month to customers? This is due to power loss. As electricity flows through transmission lines, the resistance in the wires causes some of the electrical power to be converted into heat, resulting in a loss. In Burnet, this accounts for a 6.23% loss, or approximately $357,000 annually.
To address this issue, the Burnet City Council has approved revisions to the Purchased Power Cost Adjustment ordinance. Now, when calculating the monthly electrical rate, the city will use adjusted kilowatt-hours purchased – taking power loss into account – rather than the total amount of kilowatt-hours purchased. When I applied this change to my own July electricity bill, it increased by 3.6%, or $8.79 of the month of July. Many people are surprised to learn that even with this small increase, power is cheaper today than it was 10 years ago.
Selena Tribute
Finally, mark your calendars to join us for Jackson Street Jams with a Selena Forever Tribute Band on Sept. 7 at 8:30 p.m. Come out early for a Salsa-making contest, a Mariachi band, and Folklorico dancers. This free concert series on the downtown square features live music, food, dancing, and shopping opportunities at local downtown businesses.
David Vaughn is the city manager for the city of Burnet.